PeopleFund Blog

New study says banks approved less than 10 percent of loans in 2011

When we were perusing our favorite blogs and news outlets a few days ago, we came across something that we had to share. Out of every 100 small business owners who walked into a large bank hoping for a loan last year, only 10 got the stamp of approval, according to the Small Business Lending Index.

Applying for a loan from a bank has always been the way small business owners get started and then expand their organization. But since the recent financial woes of the last few years, that situation is changing. Banks are more restrictive on who is receiving their loans and some small business owners just aren’t making the cut.

But, consider this: if just one in three small businesses in Texas were able to hire one more person, Texas would be at full employment.

There’s no way around it. If nine out of 10 small business owners are turned down for a loan, we won’t get close to that. But it is so important that we support small businesses. They’re good for our communities, good for our economy and good for people.

Luckily, banks aren’t the only ones helping small businesses with capital. We’re doing it and there are plenty of other organizations in that boat with us. You can do your part and help us do ours by spreading the word about our organization and all of the services we offer, as well as shopping locally and encouraging your friends and neighbors to do the same. And of course, keep checking our Facebook and Twitter for more updates!

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